SINGAPORE, Oct 26 (Reuters) – Singapore’s central financial institution has put ahead proposals for brand new regulatory measures on cryptocurrency buying and selling and stablecoins, in a bid to scale back the danger of client hurt from the volatility of the business.

The measures printed in two session papers on Wednesday embrace not permitting companies to lend out cryptocurrencies owned by retail clients, and to make sure buyer belongings are segregated from their very own belongings.

Cryptocurrency buying and selling companies would additionally not be allowed to supply incentives to draw retail clients, nor settle for bank card funds or present financing to retail clients.

The Financial Authority of Singapore (MAS) has stated it discourages the general public from speculative buying and selling in cryptocurrencies and has already introduced in restrictions on promoting of cryptocurrency providers in public locations.

“…Cryptocurrencies play a supporting position within the broader digital asset ecosystem, and it will not be possible to ban them,” MAS stated in a media launch, including that the proposed measures ought to assist to scale back dangers.

Other than addressing cash laundering, terrorism financing, expertise and cyber dangers, the MAS stated it needed to make sure regulated stablecoins had a excessive diploma of worth stability.

Within the case of stablecoins which are pegged to a single foreign money (SCS) the place the worth in circulation exceeds S$5 million ($3.53 million), issuers should maintain reserve belongings in money, money equivalents or short-dated sovereign debt securities a minimum of equal to 100% of the par worth of the excellent SCS in circulation. The belongings should even be denominated in the identical foreign money because the pegged foreign money.

All SCS issued in Singapore could be pegged solely to the Singapore greenback or any Group of Ten (G10) foreign money, it stated.

Banks in Singapore shall be allowed to concern SCS and no further reserve backing and prudential necessities will apply, the assertion stated.

At the moment, just one stablecoin has been issued in Singapore.

The Asian monetary hub had initially attracted main crypto companies like Binance, however some left the city-state earlier this 12 months and moved to the United Arab Emirates, citing strict regulatory curbs in Singapore.

It’s unclear when the proposed measures is perhaps introduced in, however the public has been invited to provide suggestions by Dec.21.

($1 = 1.4160 Singapore {dollars})

Reporting by Chen Lin in Singapore
Enhancing by Ed Davies

Our Requirements: The Thomson Reuters Trust Principles.

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